Across the Pacific, the US Navy’s desire to buy 52 variants littoral combat ships (LCS) appears to be shelved. Secretary of Defense, Ash Carter, directed the Navy to cap its buy at 40 ships and pick only one supplier from the two competing firms. He also told the Navy to buy only one ship a year over the next four years, down from three per year. Carter plans to use the savings to fund other Navy programs such as the purchase of missiles and aircraft. At the same time, however, Carter allocated an extra US$1.7 billion to the Navy budget over the next five years.

Last week, the BBC revealed a Royal Australian Air Force (RAAF) plane had conducted a maritime patrol over the South China Sea. Australian Defence Minister, Marise Payne, confirmed the routine maritime flight had taken place as part of RAAF Operation Gateway (in effect since 1981) and that the RAAF will continue to conduct surveillance flights in the region consistent with international law. Benjamin Herscovitch takes a look at Australia’s shaky South China Sea strategy over at the AIIA’s Australian Outlook, arguing that freedom of navigation operations are actually an ineffective response to China’s actions in the South China Sea.

The US Congressional Research Service has released a new report titled ‘The Air Force Aviation Investment Challenge.’ The report looks at the funding crunch the US Air Force will face in the next few years between its F-35 and tanker programs, the launch of the Long Range Strike Bomber program, and the continued need for drones and C-130s. The report, which can be viewed here, recommends possible courses of action for the Air Force.

Meanwhile in Washington, Lockheed Martin is about to take the US Government to court over a contract that it lost to replace US Army Humvees. US competitor Oshkosh beat both AM General and Lockheed for the contract to build 16,901 vehicles on a contract worth up to $30 billion. Upon losing the contract, Lockheed filed an administrative protest with the Government Accountability Office (GAO), but the company has now announced its desire to escalate to legal action over the matter amid claims that documents relevant to the case weren’t released until the final stages of the GAO hearing.